Income Tax (Charge)

Mims Davies Excerpts

Monday 4th November 2024 Commons Chamber

[Mims Davies (East Grinstead and Uckfield) (Con)]

It is a privilege to close this debate on behalf of His Majesty’s loyal Opposition. It has been about protecting working people. Given that many Labour Members again forgot to mention the pandemic and the war on our continent, I have had to meet some of their remarks with a degree of incredulity.

This Budget consists purely of broken promises, showing that this new Government have transparently left their integrity in tatters. As we heard from my hon. Friend the Member for Keighley and Ilkley (Robbie Moore), many people feel that they have been hoodwinked by Labour—and people do not forget. We can see what breaking promises does; it decimated the Liberal Democrats some time ago, although unfortunately, like ragwort, the comeback kids are back with a bang.

Let me turn to some of what has been said today. The Secretary of State for Work and Pensions spoke about new support for carers, and I think we all very much welcome that, but where is the update on the disability action plan? If the Minister for Social Security and Disability, the right hon. Member for East Ham (Sir Stephen Timms), were still sitting on the Opposition Front Bench, he would be asking me the same thing. Further updates on the disability strategy would be very welcome.

I congratulate the Members who made their maiden speeches today. The hon. Member for Huddersfield (Harpreet Uppal) spoke about the importance of young people and the importance of the upgrades to connectivity—many of us with rural constituencies would agree with what she said. The hon. Member for North Somerset (Sadik Al-Hassan) spoke about the impact on pharmacies and the fact that part of his constituency used to be an island, but he also said that the constituency contained the greatest National Trust site in the country. Absolutely not, with Standen, Nymans and Sheffield Park in my own constituency. I also congratulate, and say “Croeso” to, the new hon. Member for Wrexham (Andrew Ranger), who talked about a very famous football club and the work that his predecessor Sarah Atherton had done on veterans, which I think was very praiseworthy.

So much more was said today by Members on both sides of the House. My right hon. Friend the Member for Salisbury (John Glen) talked about his freedom, but also about the concern about a “sugar rush” contained in the Budget. My hon. Friend the Member for Brigg and Immingham (Martin Vickers) spoke about the importance of the fishing industry and the renewable energy sector, and asked what was the reality when it came to protecting working people. My hon. Friend the Member for Mid Leicestershire (Mr Bedford) talked about the concern that was felt about the taxing of education, saying that the Budget was bad for small and medium-sized businesses and that it was about the politics of envy. It seems that Labour Members do not like it described as a socialist Budget, which I find concerning, as the Prime Minister has confessed that he is a socialist. It is a rather odd rejection.

The hon. Member for Paisley and Renfrewshire South (Johanna Baxter) made a very loyal speech and rightly welcomed new money for Scotland. She championed redistribution, but if we tax our way to diminished growth, there is nothing to share or invest. We should all be reminded of that.

My hon. Friend the Member for West Suffolk (Nick Timothy) said that there is no mandate for this Budget. It is wasting money on the energy sector, fiddling the accounting figures and heading into dangerous territory.

I have given some responses to what we have heard in the Chamber. Despite many loyal speeches from Labour Members, even the Chancellor and the Chief Secretary to Treasury cannot deny that this is a Budget of broken promises. Frankly, it is a work of pure fiction, as some have described it. It builds on a fully costed “shamfesto”, because there is no chance of actually delivering it.

Those on the Treasury Bench should consider the wall-to-wall evidence from the Institute for Fiscal Studies, the OBR and the Joseph Rowntree Foundation, all of which agree that working people will pay the price of this Budget. The Joseph Rowntree Foundation estimates that the average family will be £770 worse off in real terms by October 2029—frankly, that is nothing to crow about. Wages will be stagnant or indeed reduced, jobs will be lost, pensioners have been betrayed, and young people have been left in the lurch. Food prices will stay high and the energy sector will be wrecked, as my hon. Friend the Member for Gordon and Buchan (Harriet Cross) said.

There is a depressing future for our country, because this Budget does nothing for working people. It is a Budget that attacks the countryside and pits the public sector versus the private sector, all while leaving interest rates higher for longer. In fact, the pub group Fuller’s has today warned the Business Secretary that companies in the sector now face an avalanche of costs. Hospitality is quaking, and it is a very concerning Budget. In fact, the Chancellor herself admitted that Labour’s job tax, as she has called it, will have an impact on wage growth. That is backed up by the OBR, which concludes that 76% of the total cost will be felt by working people. Real household disposable income will be 1.25% lower by 2029. Disgracefully, that will affect part-time workers, 6 million of whom are women.

Let us look at the childcare sector, which is vital for women. It provides employment but, crucially, also enables women to go back out to work. Some nurseries are saying that costs will rise by up to £60,000 for their businesses, adding up to 10% to every childcare bill sent out.

In my constituency, I have Faversham House and the Prime Service Group, which I met on Friday. People had their heads in their hands. Family businesses have been in touch in their droves. I wonder whether Labour Members have ever opened their emails or, indeed, gone back to talk to people on their high streets. The Budget will affect key sectors and, crucially, business confidence.

As we head into the next few days of this Budget debate, Dr Brien of the Social Security Advisory Committee has set out his concerns about the impact of the changes to the winter fuel payment, not least the processing of pension credit claims. Questions remain unanswered by the Secretary of State. Welfare reform has been left open-ended, creating uncertainty for millions of claimants who are waiting to hear an update on the Buckland review, autistic employment, and the Lilac review into SMEs and supporting entrepreneurship among disabled people and those with health conditions.

This Budget takes us back to the ’70s. The reality is that we will all pay the price for Labour’s 1970s-style Budget. The Government have claimed that they have taken the difficult decisions. No, they have not. They have left those decisions to their own constituents—those who are working out staff redundancies, the impact on their business and whether they can take on new staff members. Despite the loyal speeches, this is not a Budget for protecting working people; it is a desperately sad, destabilising set of Budget resolutions, record spending, record debt and a record tax burden, all for very little growth. I urge the Government to think again and to listen to all of their and our constituents.